A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital $72,500 65.000 11,000 89,000 Bell's creditors have filed a $30,000 claim against the partnership's assets. The partnership currently holds assets of $390, 000 and liabilities of $152, 500. If the assets can be sold for $235,000, what is the minimum amount that Bell's creditors would receive? Multiple Choice $10.500 $500 $0 $2,500

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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A partnership is considering possible liquidation because one of the partners (Bell) is personally
insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current
time are Bell, capital Hardy, capital Dennard, capital Suddath, capital $72, 500 65.000 11,000 89,000
Bell's creditors have filed a $30,000 claim against the partnership's assets. The partnership currently
holds assets of $390,000 and liabilities of $152,500. If the assets can be sold for $235,000, what is the
minimum amount that Bell's creditors would receive? Multiple Choice $10.500 $500 $0 $2,500
Transcribed Image Text:A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital $72, 500 65.000 11,000 89,000 Bell's creditors have filed a $30,000 claim against the partnership's assets. The partnership currently holds assets of $390,000 and liabilities of $152,500. If the assets can be sold for $235,000, what is the minimum amount that Bell's creditors would receive? Multiple Choice $10.500 $500 $0 $2,500
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